Turning creativity to cash

This document discusses the different sources of entrepreneurial ideas and innovation, the rationale and market gap for a specific entrepreneurial idea, and the data needed to support gap analysis. It also applies a SWOT framework to assess the specific entrepreneurial idea of Lush and Blush Cosmetic Store.

Turning
creativity
to cash
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INTRODUCTION
An entrepreneur is considered as an individual who establish a business unit by taking
financial risk in order to earn profit. For becoming a good entrepreneur a person required
numbers of specific skills as that will help them in conducting business effectively such as
communication, understanding, leadership, creativity and many more. Before taking any decision
for establishing an enterprise an individual need to conduct market analysis so that they can
identify proper opportunity (Aliabadi, Ataiee and Movahedi, 2016). Respective assignment is
based on organisation i.e. Lush and Blush Cosmetic store which offer organic cosmetic products
made up of leaf, flowers and other organic material. Respective company is conducting this
business operations at United Kingdom. Topics covered in this report are different sources of
entrepreneurial idea and innovation as well as it will also include rationale as well as market gap
for a particular entrepreneurial idea. Along with this it will also include evaluation of market
potential through primary and secondary data as well as report will also explain about
determination evaluation of market as well as competitions related to entrepreneurial idea.
TASK 1
P1 Determine and evaluate different sources of entrepreneurial ideas and innovation.
There are different types of sources that is help in starting and running new or innovative
business concept. It is crucial for Lush and Blush to analyse or evaluate these resources in order
to conduct all task and activities in better manner (Davidsson, 2015). In order to determine
analyse and determine different sources can be determined through Peter F Drucker model. This
is very effective model in order to analyse valuable resources for innovation and
entrepreneurship. Various sources for enhancing innovation opportunity for this respective
company is mention below.
The unexpected – This includes all those innovation that has taken place by chance and
this is also known as unexpected implementation of innovation. Unexpected situation will lead to
development of new and innovative products and services. Unexpected failure and unexpected
success will lead to creation on innovative products that will helps in meeting with desired goals.
Incongruities – This consist of those innovation of product or service that is developed
when needs are incongruity as per the supply. It includes creation of new product and services
with the motive of resolving current incongruities. In order to meet with the needs of targeted
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customers and analysing the difference between what consumer want and what it is suppose to
be. This will help in inspiration of innovation of products.
Process need – In this Drucker has more focus on organisational situations as well as
task of business. Process needs includes development of new products while meeting with the
organisation needs and requirements. Identification of business process clearly as well as
determine the weak spot of business process. Improvement in process of business can be
consider as opportunity for development of innovative products.
Market and industry structure changes – It has been analysed that existing or current
market structure can help in rising the innovation. Industry and market structure will lead to have
great impact on performance of business as well as development of new and creative products. It
is opportunity to create and enhance innovation with the changes in the structure of market and
industry.
Demographic -This includes various factors such as attitude, lifestyle, behaviour and
many other demographic components (Wood and McKelvie, 2015). Changes in demographic is a
opportunity for innovations as it is crucial for organisation to create products and services that
will lead to meet with the needs of customers. Rise in innovation for full fulling the demographic
needs as well as meeting with the lifestyle is essential factor.
Changes in perception – Changes is perception will lead to have influence on
innovation. It has been analysed that change is a continuous process and it is required for
company to design products and services that fill best as per customer perception. Innovation in
commodity and services by considering perception changes is an opportunity.
New knowledge - New and better knowledge can be consider as the source of
innovation as this will lead to create better products and services. Implementation of updated and
advance technology is an opportunities for innovations. It has been analysed that new knowledge
will lead to create better and effective ideas which is an opportunities for innovation.
Thus, changes in perception source is considered as opportunities for innovation for Lush
and Blush company. Nowadays customers prefer cosmetic products which does not includes
chemical ingredients. This organisation is creating products that is natural and organic. This will
lead to develop innovative products which is as per perception of customers.
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TASK 2
P2 Explain the rationale and the market gap for a specific entrepreneurial idea using relevant
tools and techniques to support your choice.
It is crucial for this company to identify the targets market as well as potential customers
in order to enhance sales and revenues. Lush and Blush company is developing organic cosmetic
products in order to provide high quality products to customers (George, Parid aand Wincent,
2016). Organic cosmetic products are in more demand as most of the customer prefer organic
product for their skin and body. In order to determined potential customer STP model will be
helpful for respective company.
STP analysis Segmentation – Lush and Blush company is segmenting its customer on the basis of
geographical region and demographic behaviours. Segmentation will help in classifying
customers as per needs. Targeting – This includes the process of targeting customer that will help in increasing
revenues of organisation. Lush and Blush company is targeting UK customers who are
above age 20.
 Positioning – It is positioning its products by developing positive image of organic
product in customer mind. Lush and Blush products will lead to have major benefits for
skin and body.
Market gap analysis
This includes five major forces that will helps in understanding the impact of various
forces of industry and other companies (Karimiand et. al., 2016). This will lead to identifying
the market gap as well as development of better strategies. Threat of new entrant – Lush and Blush is new company that is providing its product to
UK market area. So increase in new entrant organisation is same market will lead to have
high impact on its performance. Bargaining power of buyer- Respective organisation is developing high quality products
that will lead to meet with customer needs. Bargaining power of buyers will lead to have
moderate affect on this company.
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 Bargaining power of suppliers – Lush and Blush organisation is collecting resources
from different suppliers. There are large number of supplies in market so this force will
lead to have lower impact on business and its performance. Threat of substitution – This company is developing new and innovative products. So
there is lesser products in market that can be substitute of Lush and Blush company. This
force will not have major impact on company.
 Threat from existing rival companies – There are various strong company that is dealing
in skin care and cosmetic products. Large number of rival companies will lead to have
negative affect on Lush and Blush organisation.
TASK 3
P3 Present data needed to support gap analysis in the evaluation of a specific entrepreneurial
idea.
Gap analysis is considered as method which is use to determine gap among the standard
outcome and actual result. Through this an organisation able to determined what they want to do
and what they done that will directly help them in developing decision as well as action plan
according to situation (Karlesky, 2015). In respect of Lush and Blush Cosmetic Store they are
offering wide range of organic products which are made up of leaf, flowers, natural essence and
so on. In order to determine gap they conduct their comparison with rivalry company, which is
mentioned below:-
Comparison with competitor
Lush and Blush Cosmetic Store Rival Cosmetic Company
 Respective company offer wide range
of totally organic products which are
made up of leaf, flower, natural essence
and so on.
 Other competitive company offer
organic cosmetic products but it contain
some chemical.
 Respective company offer their organic
products at the affordable price.
 Rival cosmetic firm charge huge price
for organic cosmetic products.
Moreover, in order to gather gap analysis Lush and Blush Cosmetic Store also gather
informations through primary and secondary source, which are mentioned below:-
Primary Source
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It is also know as original source of gather information or data. At this source,
informations, data or statistics are gather at first handed as well as these are more authenticate as
well as reliable data (Korte, 2018). In respect of Lush and Blush Cosmetic Store they are
gathering informations by develop questionnaire which is mentioned below:-
Questionnaire
Questionnaire
Q1. Do you think customers are aware about organic cosmetics made up of leaf and
flowers?
a) Yes
b) No
Q2. How much you can pay for organic cosmetic products?
a) Under £ 10
b) Under £ 30
c) Under £ 60
Q3. What factor you consider while purchasing your skin care products?
a) Recommendation from sales person
b) Natural cosmetic/ Product ingredients
c) Brand
Q4. From where you buy your natural beauty or skin care products?
a) Online Store
b) Pharmacies
c) Local Store
d) Specialist organic supermarket
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Secondary Source
In this information or data are gathered through already existed books, articles, online
blogs, documents and so on (Koryak and et. al., 2015). In respect of Lush and Blush Cosmetic
Store in order to evaluate gap analysis related to age who spend more on cosmetic at United
Kingdom they use secondary source with graph, which is mentioned below:-
P4 Interpret data appropriately to provide evidence of market potential.
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Illustration 1: Share of spending on toiletries and cosmetics in the United Kingdom
(Source: Share of spending on toiletries and cosmetics in the United Kingdom (UK) in the
year ended August 16, 2015, by age group, 2020)

Q1. Do you think customers are aware
about organic cosmetics made up of leaf and
flowers?
Frequency
a) Yes 20
b) No 10
Mean 15
Median 15
Mode NA
Interpretation- As per the above data collection it has been determined that 20
respondents out of 30 are well aware the prices of developing organic cosmetics. Where as other
10 respondents has reacted negatively that they do not known that organic product are made by
flowers and leaf.
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a) Yes b) No
0
2
4
6
8
10
12
14
16
18
20
20
10
Column B

Q2. How much you can pay for organic
cosmetic products?
Frequency
a) Under £ 10 5
b) Under £ 30 15
c) Under £ 60 10
Mean 10
Median 10
Mode NA
Interpretation - According to the collected data most of the customers can pay £ 30 for
organic cosmetic products. Where as other 5 and 10 respondent are willing to pay Under £ 10
and £ 10 respectively.
10
5
15
10
a) Under £ 10
b) Under £ 30
c) Under £ 60

Q3. What factor you consider while
purchasing your skin care products?
Frequency
a) Recommendation from sales person 4
b) Natural cosmetic/ Product ingredients 20
c) Brand 6
Mean 10
Median 6
Mode NA
Interpretation – There are different factors that needs to be consider by customer by
purchasing skin care products. As per data it has been analysed that 4 and 6 respondents feel that
they consider recommendation products by sales person and brand respectively. Where as most
of the respondents that is 20 consider natural and organic products.
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a) Recommendation from sales person
b) Natural cosmetic/ Product ingredients
c) Brand
0 2 4 6 8 10 12 14 16 18 20
Column B

Q4. From where you buy your natural
beauty or skin care products?
Frequency
a) Online Store 5
b) Pharmacies 8
c) Local Store 5
d) Specialist organic supermarket 12
Mean 7.5
Median 6.5
Mode 5
Interpretation- There are different ways from where customer can purchase natural and
beauty products. Though data it has been analysed that most of customer such as 12 prefer
specialist organic market. Where as other 5, 8 and 5 feels consider online store, pharmacies and
local store to purchase products.
12
5
8
5
12
a) Online Store
b) Pharmacies
c) Local Store
d) Specialist organic
supermarket

TASK 4
P5 Apply a SWOT framework to collate evidence to support an objective assessment of a
specific entrepreneurial idea.
SWOT analysis is considered as strategic plan or technique which help a company or
person to identify their strength, weakness, opportunities and threat. Through this they able to
determine effectively opportunities which they grab with their strength as well as it will also aid
in identifying threat which can arise due to weakness (Kraus and et. al., 2015). So by conducting
SWOT analysis company or an individual or entrepreneur can develop effective decision which
help them in attaining their desire goal as well as objective in effective manner. In respect of
Lush and Blush Cosmetic Store they are offering total organic products which may help them in
attracting more and more customers through which they can attain desire goal. Below SWOT
analysis of respective cosmetic store is given:-
Strengths Weaknesses
 Organic products: Respective
company provide totally organic
cosmetic products which are made up
of tree leaf, flowers and so on. Through
this they able to attract more and more
customers of all age group in UK
marketplace.
 Reasonable price: Lush and Blush
Cosmetic Store offer wide range of
organic products at the affordable price
which help them in attracting all
income group people at UK market.
 Unisex: Respective company offer
their wide range of cosmetic products
for both male as well as female
customers. This will help in attract
huge customers and ensuring high
 Under experience: Lush and Blush
Cosmetic Store is under experience in
the cosmetic industry due to which they
may face huge difficulties while
developing decision or strategies.
 Funding: Respective cosmetic shop
idea is innovative and creative but they
are new in the United Kingdom market.
Due to which they faced major issues in
attracting investors, shareholders and
stakeholders (Nieto andGonzález-
Álvarez, 2016).
 New Legislation: Lush and Blush
Cosmetic Shop is operating in cosmetic
industry at which animal testing are
conducted to test products. But now
they due to new rule animal testing get
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sales.
 Different types: Lush and Blush
Cosmetic Store offer wide range of
cosmetic products for different skin
types such as normal, oily,
combination, sensitive and dry (Omri
and Boujelbene, 2015).
 Skilled Staff: Respective company hire
staffs who are skilled, knowledgeable
and experienced as that will help them
in attracting customers and ensuring
that they able to attract as well as retain
customers.
banned which may impacted on
respective company operations.
Opportunities Threats
 Enhance awareness: Lush and Blush
Cosmetic Store can conduct
promotional activities in order to
increase brand awareness at the United
Kingdom marketplace.
 Expand business: Respective company
can open more stores at different
location of United Kingdom as that will
help them in attracting more and more
customers towards the products.
 Operate through online: Lush and
Blush Cosmetic Store can also offer
their products through online
application or website as that will help
in attracting huge numbers of
customers at the United Kingdom
 Competitors: There are numbers of
companies which are operating at the
cosmetic industry from many year. Due
to which Lush and Blush Cosmetic
Store face huge competitions such as
100 % Pure, True Botanicals, OSEA,
Juice Beauty and many more (15 Best
Natural & Organic Skincare Brands
For That Perfect Pure Glow, 2020).
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market. Along with this it will also help
them in attracting other location
customers.
P6 Evaluate the competitive and market environments in which the idea will be launched to
assess potential viability.
Market Analysis is determined as a tool which is used by a company in order to evaluate
competition as well as market environment. Through this an organisation able to develop
effective strategies or plans in order to conduct their business operations and functions properly
for attain their predetermined goal (Park, Sung and Im, 2017). Lush and Blush Cosmetic Store is
offering organic cosmetic products which are made up of leaf, flowers, essence and many other
material as well as they also offer wide range of products for all skills types like sensitive, oily,
dry, combination and so on. In order to determine effectiveness of their business idea Lush and
Blush Cosmetic Store conduct market analysis on major two factors i.e. competition market
environment, which are explain below:-
Competitive Environment Demand of products: According to this Lush and Blush Cosmetic Store evaluate demand
of their organic cosmetic products. As they are offering wide range of cosmetic products
which are made of up organic material as well as they are offering products for all skin
type in reasonable price. So they can attract customers of all age group at the United
Kingdom marketplace.
 Availability of products substitute: In respect of this factor respective company need to
determine availability of substitute products at the potential marketplace (Reuber and et.
al., 2018). Lush and Blush Cosmetic Store is offering total organic products made of
natural material which help them in attracting huge numbers of customers at the
marketplace. Moreover, in today's time many company offer organic product but they use
chemical in that, as that will help in gaining competitive advantage for respective firm.
Market Environment Micro environment: It refers to that factors which impact on a company business
operations and function on direct basis such as suppliers, competitors, customers,
government and many more (Suddaby, Bruton and Si, 2015). So in respect of Lush and
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Blush Cosmetics Store they need to conduct analysis of micro environment factors as that
will help them in developing effective decision. Along with this, it will also help
respective company in determining factors or risk related to their business.
 Macro environment: This refers to those business or environmental factors which impact
on business operations and functions. The analysis of macro environmental factors will
be determined by conducting PESTEL i.e. related to political, economical, technological,
social, environmental and legal (Thursby and Berbari, 2016). Through this Lush and
Blush Cosmetic store able to develop effective strategies or action plan which help them
in attaining their desire goal and objective.
CONCLUSION
By analysing above discussed point it can be summarise that, for establishing a business
an entrepreneur or individual need to conduct market analysis as that will help them in
identifying opportunities. According to which they can established a business unit as well as that
will also help them in attract customers and earning wide range of profitability ratio. Along with
this in order to establish a new venture a person need to have new as well as unique idea as that
will attract huge audience at market. In this they also need to conduct gap analysis so that they
can determine gap in respect of customers demand and expectation along with company offering.
This will also help in developing effective decision related to products and services of an
organisation. Moreover they can also conduct analysis of their effectiveness through different
model such as SWOT analysis. In addition to this, company management also need to conduct
market evaluation because that will help in determining competitive as well as market
environment.
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